Correlation Between Piotech and Xiangyang Automobile
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By analyzing existing cross correlation between Piotech Inc A and Xiangyang Automobile Bearing, you can compare the effects of market volatilities on Piotech and Xiangyang Automobile and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Piotech with a short position of Xiangyang Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piotech and Xiangyang Automobile.
Diversification Opportunities for Piotech and Xiangyang Automobile
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Piotech and Xiangyang is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Piotech Inc A and Xiangyang Automobile Bearing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangyang Automobile and Piotech is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Piotech Inc A are associated (or correlated) with Xiangyang Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangyang Automobile has no effect on the direction of Piotech i.e., Piotech and Xiangyang Automobile go up and down completely randomly.
Pair Corralation between Piotech and Xiangyang Automobile
Assuming the 90 days trading horizon Piotech Inc A is expected to generate 1.18 times more return on investment than Xiangyang Automobile. However, Piotech is 1.18 times more volatile than Xiangyang Automobile Bearing. It trades about 0.03 of its potential returns per unit of risk. Xiangyang Automobile Bearing is currently generating about 0.02 per unit of risk. If you would invest 13,846 in Piotech Inc A on September 26, 2024 and sell it today you would earn a total of 3,164 from holding Piotech Inc A or generate 22.85% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Piotech Inc A vs. Xiangyang Automobile Bearing
Performance |
Timeline |
Piotech Inc A |
Xiangyang Automobile |
Piotech and Xiangyang Automobile Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Piotech and Xiangyang Automobile
The main advantage of trading using opposite Piotech and Xiangyang Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piotech position performs unexpectedly, Xiangyang Automobile can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Xiangyang Automobile will offset losses from the drop in Xiangyang Automobile's long position.Piotech vs. Ping An Insurance | Piotech vs. Guangzhou KingTeller Technology | Piotech vs. Hefei Metalforming Mach | Piotech vs. Chongqing Shunbo Aluminum |
Xiangyang Automobile vs. China Life Insurance | Xiangyang Automobile vs. Cinda Securities Co | Xiangyang Automobile vs. Piotech Inc A | Xiangyang Automobile vs. Dongxing Sec Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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